# Barclays Warns Added Capacity May Squeeze AI Data Center Suppliers

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/36057
Published: 2026-10-20T22:45:58.000Z
Updated: 2026-10-20T22:45:58.000Z
Section: Business

> ABB’s third-quarter orders rose 40%, while Schneider Electric recorded double-digit organic revenue growth.

Barclays sees a risk that added production capacity could weaken pricing power for AI data center equipment suppliers, putting future margins in focus despite strong orders and revenue.

Barclays analyst George Featherstone identified Siemens Energy AG, Siemens AG, ABB Ltd. and Schneider Electric SE in an Oct. 20 assessment. Siemens Energy and Siemens AG are separate companies. The concern centers on what suppliers may be able to charge as they expand production capacity to serve data center customers.

ABB booked $12.055 billion in third-quarter orders, up 40% from a year earlier. Its data center orders grew by a triple-digit percentage. The company’s group operational EBITA margin rose to 20.8% from 19.2% a year earlier.

ABB is also expanding capacity to meet demand. That expansion concerns ABB’s own operations and does not establish that equipment supply has increased across the industry. Its group margin covers more than data center equipment, so it cannot serve as a measure of profitability on those products alone.

Schneider Electric’s third-quarter revenue grew 16.9% organically, alongside triple-digit growth in data center demand. Prices rose sequentially in its broader Products business, but that figure does not isolate data center equipment. Schneider Electric sells electrical distribution, cooling and power systems for data centers.

Siemens AG recorded triple-digit order growth in its Smart Infrastructure data center business during the first nine months of fiscal 2026. That measure covers one business and a longer period than the third-quarter figures from ABB and Schneider Electric.

The figures describe different stages of business activity. Orders capture demand booked with suppliers, while revenue reflects sales recognized during a period. Strong results on either measure do not establish the prices suppliers will secure as additional capacity becomes available.